Answer: $4,811
Explanation:
Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible that would be,
= 6% * 98,700
= $5,922
The Allowance for Doubtful Accounts acts as a buffer for the business when bad debts are incurred.
Bad debts are taken from the Allowance as the Allowance has already been removed from the Receivables.
In cases where Bad debts exceed the buffer in the Allowance for Doubtful Debt Account we take everything in it and the remaining bad debt amount is debited to Bad Debt expense.
That would be,
= 5,922 - 1,111
= $4,811
$4,811 is the amount that should be debited to Bad Debts Expense.
Answer:
$929,404.15 (approx)
Explanation:
The dollar amount actually earned by Solartech after exchanging yen for U.S. dollars :-
= Price ÷ One dollar bought
= 143,500,000 ÷ $154.40 yen
= 143,500,000 ÷ $154.40 yen
= $929,404.15 (approx)
Therefore for computing the dollar amount actually earned by Solartech after exchanging yen for U.S. dollars, we simply divide price by one dollar bought.
Answer:
The production departments in the first stage and the unit of product in the second stage.
Explanation:
The cost object under the department overhead rate used to allocate the cost based on the cost drivers.
In this departmental overhead rate method, first the overhead is allocated in the first department after that in the second stage the unit of product is done
so that the proper sequencing could be done and actual value could come
Answer:
see below
Explanation:
he farmers must have considered the ability to repay back loans when making the decision. The ability of a business to meet its current obligations is expressed by the current ratio.
The current ratio or working capital ratio communicates a firm's ability to repay debts as they become due. The higher the ratio, the better.
the current ratio is calculated as current assets/current liabilities
For Firm A,
current ratio =$150,000/ $125,000.
=1.2
For Firm B,
current ratio =$100,000/$75,000
=1.333
Firm B has a better current ratio than Firm A. Firm B is in a better position to repay loans compared to Firm A.
Answer:
Bad debts expense Debit $ 600
Allowance for Uncollectible expenses Credit $ 600
Explanation:
The allowance for uncollectible accounts is estimated usually on the basis of a percentage of credit sales. The data in the question indicates that the estimated losses from uncollectible accounts is $ 1,000.
The unadjusted balance is $ 400, so the adjusting entry is for the balancing amount, i.e. $ 600. It is debited to bad debts and credited to allowance for uncollectible accounts.
